Direct materials 7.2 ounces $ 2.00 per ounce $ 14.40 Direct labor 0.9 hours $ 16.00 per hour $ 14.40 Variable overhead 0.9 hours $ 5.00 per hour $ 4.50 The company reported the following results concerning this product in June. Originally budgeted output 2,600 units Actual output 2,200 units Raw materials used in production 20,400 ounces Purchases of raw materials 21,500 ounces Actual direct labor-hours 5,100 hours Actual cost of raw materials purchases $ 42,000 Actual direct labor cost $ 12,600 Actual variable overhead cost $ 3,300 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for June is: